PENNANT IN GOLD - price may run to 1370-1390 in 2-3 weeks
A pennant forming in gold. The commercial's short position was near 300.000 last week.
It means big banks are waiting for gold to fall into the daily cycle low.
But the buying pressure in gold is so strong that it seems to me that we are forming a pennant instead of the daily cycle low...
A pennant pattern is a continuation pattern in the 95% of the cases...
The initial price objective is equal to the distance of the prior move added to the breakout point. In gold's example, the prior sharp up movement was from $1100 to $1263, then the resulting price objective from a price breakout of $1223 would be $1386.
03.17.2014. Intermediate Cyle high was 1390...
What will move the price to that high? If we break up from the pennant the commercials will close the 2/3 of their positions.
That would be 200.000 short position...
One big 100 $ candle... We have to prepare for that ...
Mark my words: if we break above 1232 we will have a very fast move to 1306 and 1347. Maybe 2-3 days move only.
It means big banks are waiting for gold to fall into the daily cycle low.
But the buying pressure in gold is so strong that it seems to me that we are forming a pennant instead of the daily cycle low...
A pennant pattern is a continuation pattern in the 95% of the cases...
The initial price objective is equal to the distance of the prior move added to the breakout point. In gold's example, the prior sharp up movement was from $1100 to $1263, then the resulting price objective from a price breakout of $1223 would be $1386.
03.17.2014. Intermediate Cyle high was 1390...
What will move the price to that high? If we break up from the pennant the commercials will close the 2/3 of their positions.
That would be 200.000 short position...
One big 100 $ candle... We have to prepare for that ...
Mark my words: if we break above 1232 we will have a very fast move to 1306 and 1347. Maybe 2-3 days move only.